With the market trying to rally but still in correction, very few sectors are flourishing. One of them is the oil and gas sector. That group ranks a lofty No. 10 on IBD's list of 197 industry groups. Among the leaders in that group is natural gas pipeline transport and storage company Kinder Morgan. On Wednesday, its IBD SmartSelect Composite Rating rose to 97, up from 94 the day before, and just a few clicks from a perfect 99. Kinder Morgan stock rose more than 3% Wednesday to 18.14.
The upgrade means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. The market's biggest winners often have a 95 or higher score in the early stages of a new price run, so that's an important benchmark to look for when looking for the best stocks to buy and watch.
Kinder Morgan Stock Climbs Amid Geopolitical Turmoil
Russia is a major supplier of natural gas for Western Europe. The Russian invasion of Ukraine has severed many ties between Russia and its Western neighbors. The U.S. is natural gas-rich and looks to make up at least part of the shortfall for its European allies. That could lift Kinder Morgan shares.
In Q4, the company's revenue jumped 42% year over year. That came after revenue growth of 68%, 23% and 31% over the prior three stanzas. The company has now posted accelerating revenue growth in each of the last two reports. One weak spot is the company's 72 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
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Kinder Morgan stock is currently forming a consolidation, with a 19.39 buy point. See if the stock can break out in heavy trade at least 40% higher than normal.
Other Strong Ratings
Among its other key ratings, Kinder Morgan stock's B Accumulation/Distribution Rating shows moderately strong buying by institutional investors over the last 13 weeks.
Additionally, its 87 Relative Strength Rating puts Kinder Morgan stock among the top 13% in terms of strength relative to other stocks.
Kinder Morgan holds the No. 5 rank among its peers in the Oil&Gas-Transportation/Pipeline industry group, according to IBD Stock Checkup. DCP Midstream, Flex Lng and Hess Midstream are also among the top 5 highly rated stocks in the group.
